Job Discussion Forums

[asianbizarre]

I've recently begun work at a private college--my first China job.
The contract stipulates that 70% of my salary is convertable to US dollars.
When I went to the bank to try to change RMB to US, they said I needed a special form or document. When I told this to the FAO, she said it was very complicated process to get the required document. She said that the accounting dept. here at the school could issue 70% of my salary in US dollars. This would be fine except that their exchange rate is over 8 RMB to the dollar instead of 7.8 like the bank. I'd rather not lose this money to a jury-riggeed exchange rate.
Any advice out there???

[jammish]

Just get a Chinese friend to do it. They can now exchange up to 20,000 USD worth a year with no hassles other than having to bring their ID.

[cj750]

Likely the school is not paying taxes on you so they do not have all the papperwork to complete the 70% conversion...you need a contract, FEC, Passport with Residence sticker...in the book your finance department can fill out the necessary pages..and if you do not make so much..no need for a tax statement from the local tax office..
but as said in most communities there is either a place that back market exchanges or men in black suits who exchange money outside the bank..when you finish an excahnge be sure to take the bills in the bank and check them for "real"....often the bank stations these "money hawks" around their entrance...

[vikdk]

[WordUp]

Do you have a residence permit for working in China? If you have that and or the foreign expert book, (red) you should be able to convert your money at the bank so long as your school provides you with a tax document that shows that you are legally employed with the school (and that they are paying taxes on your salary)


8 RMB is pretty standard... by the way

[China.Pete]

"Just get a Chinese friend to do it. They can now exchange up to 20,000 USD worth a year with no hassles other than having to bring their ID." -- Jammish

Jammish is absolutely right. And this has all been hashed out before on another thread:

http://www.eslcafe.com/forums/job/viewtopic.php?p=427521&highlight=#427521

[asianbizarre]

Thanks for the tips.
As one respondant noted, my school may NOT be paying the taxes so are reluctant to issue the stamp in my FEC--i.e., 'it's very complicated'...
I'll save my RMB until I can make a good enough local friend to help me.

[vikdk]

if you get a friend to do it remember that it should be a much easier process in an independant bank - the 4 state owned (bank of ch, agri bank, bank of consc, ICBC (which is apparently the worst)) are slow and will want to push millions of pieces of paper into your friend's face!!!!!!

[kev7161]

Disclaimer: All Bank of Chinas and other banks seem to have their own set of rules, but in general, here's what you will probably need (I've done this with both main BoCs in Hangzhou and Suzhou):

1st visit - - contract, they'll make a copy of it

1st and following visits - - Your FEC (foreign expert's certificate) with school stamp and amount allowed to exchange (NOT 70%, but rather what is that amount - - 70% of 5000, for example is 3500. 3500 should be written in the book.

Your passport with current residence permit

. . . and that's it! You might want to inquire if you need to bring in your contract every time, but I'm banking at this place now for over a year and my FEC and passport are all I ever need.

[cj750]

If you cant get the tax paper..and if your contract shows over 4000 in earnings..then it will be a no go...and many Bank of china have men stationed outside the bank..usually they are trustworthybut someitmes ...anyway..leave a couple of freinds outside..and go inside to check..if the money changer is trustworthy..he will wait on you to come back out...if not he will try and run...but likely you can find someone who has done biz with others before..
the only way to tell a US bill is not bogus is a pen..costly but if your doing a lot of US dollor exchange a worthwhile investment...

[chengdude]

[laska]

Have you tried negotiating the exchange rate with your school? Someone is probably just trying to make a couple extra bucks--"Hey, maybe that laowai will exchange his money at over the normal rate just like the last one did; that would be great--we can make a couple extra bucks..." Bring the accountant some chocolate and say, "Ah, c'mon, 7.9142, just like in the bank." Worth a try if it would save you some hassle.

Otherwise, don't deal in cash. All electronic baby. Actually, many Chinese prefer money changers because their rates are better than the bank's. In fact, the action that would score you the most respect is to have the money changed yourself or with a friend to get the best rate...

By the way, you might feel them on the teeth a little bit to see whether they are paying taxes... Maybe you can say you need the tax receipts, for example to prepare your taxes or to buy a house (you need to verify income to get a mortgage). See how they react. (They will probably do nothing.) Also, do they tell you how much tax you are supposedly paying? If everything is legit, you should be able to use a receipt from your landlord to deduct your rent from you income for tax purposes; you should be able to deduct other stuff as well, in my experience. You might consider talking to them about this. Even if they don't agree, they at least will not think you are as studpid as they probably took you for. If you press the issue, they may give you the deductions just to shut you up, even if they are not paying taxes. If they are not paying taxes, it may be a scam just in the accountants' office--the school management probably doesn't know about it (if it's not a small school) because if the government catches them, it's a big fine.

[Drizzt]

Like the other posters have said, if you have a Chinese girlfriend, boyfriend, or just a good friend, have them do it!

My Chinese girlfriend helped me do it and it wasn�t so complicated. Just be aware that you can only convert up to 2000 dollars per day, so you might have to make several trips if you have saved up quite a bit of dough.

[asianbizarre]

Thanks so much to all of you. Your replies are most informative...

[kev7161]

I've never had to show a tax form of any sort for when I was making 5000, then 10000, and even my current salary, which is a little more.